Betting Against Roku Now Could Be a Mistake
Roku (NASDAQ: ROKU) warned a couple of months ago that the second half of this year would be challenging, and unfortunately it was being honest. The video streaming pioneer posted mixed financial results for the third quarter on Wednesday afternoon, and it followed that up with problematic guidance.
Shares of Roku were already non-participants in this year's rally. The stock was trading 6% lower in 2021 through Wednesday's close. Its year-to-date slide got worse after opening sharply lower on Thursday.
At least seven analysts would go on to slash their price targets on the stock following the report. One of them -- Justin Patterson at KeyBanc -- has now cut his near-term goal for Roku shares twice this week. He lowered his price target from $490 to $460 on Tuesday, ahead of the report. He's now perched at $430. There's a lot going on at Roku right now, but it doesn't have to end badly. Selling Roku into Thursday's slide could be a big mistake.
Source Fool.com
